Dollar General Corp., Sears Holdings Corp Post Earnings Results

Dollar General and Sears released their latest earnings reports before opening bell this morning. Dollar General posted adjusted earnings of 88 cents per share, which just edged out the analyst estimate of 87 cents per share, on revenue of $5.07 billion, a 7.3% increase from last year. Analysts had been expecting $5.09 billion in sales.

Sears reported losses of $2.86 per share and $5.8 billion in revenues, compared to the analyst estimates of $2.84 per share in losses and $5.51 billion in revenue.

Dollar General’s same store sales rise

Dollar General’s net income was 86 cents per share, compared to last year’s 78 cents. The discount retailer reported a 2.3% increase in same store sales as both customer traffic and average transaction value climbed year over year. All categories of merchandise saw growth in same store sales, with consumables rising faster than non-consumables during the fourth quarter. The retailer found the largest growth in consumables to be in candy and snacks, tobacco, and perishables. In non-consumables, the strongest categories were sundries, housewares, hardware and ladies’ clothing.

Management at Dollar General expects full year sales to rise by about 8% and same store sales to rise by between 2.5% and 2.8%. Diluted earnings are expected to be between $3.87 and $3.92 per share, while adjusted earnings are expected to be between $3.88 and $3.99 per share or the full year. For the fourth quarter, management expects diluted earnings to be between $1.23 and $1.28 per share.

Shares of Dollar General edged higher in premarket trading following this morning’s results, rising by as much as 0.99% to $66 per share.

Sears posts more losses

Sears’ domestic adjusted EBITDA was -$280 million compared to last year’s -$296 million, while its net loss was $4.26 per share, compared to last year’s loss of $5.15 per share. Kmart comparable store sales fell 6.4% excluding impacts from the consumer electronics business. Sales in the consumer electronics, drugstore, and grocery and household categories offset improvements in home appliances and mattress sales. Sears had $294 million in cash on its balance sheet at the end of October, an increase from the January 31 balance of $250 million.

Shares of Sears fell by as much as 2.01% to $20 per share in premarket trading after this morning’s earnings release.